08-Oct-26 Proposed ?10 and ?20 polymer banknotes could create a specialised new application for BOPP film, coatings, security materials and high-precision printing technologies
India has taken a significant step towards introducing polymer banknotes, with the country's currency-printing arm inviting suppliers of specialised polymer substrate and a consortium led by UFlex and US-based Spectra Systems reportedly submitting a bid for the proposed programme.
The initiative is being pursued by Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL), a wholly owned subsidiary of the Reserve Bank of India. The tender seeks biaxially oriented polypropylene (BOPP)-based polymer substrate sheets with specialised surface and security characteristics.
The development is potentially significant not only for India's currency system but also for the domestic polymer and specialty-film industry.
From paper to polymer
According to the tender details reported for the Indian programme, the required substrate is BOPP with an opacifying coating, anti-static coating and a surface suitable for printing and ink adhesion.
The programme is being introduced on a trial basis before any decision on wider circulation.
The Government has approved a proposal for field trials involving one billion ?10 notes and one billion ?20 notes, with wider regular issuance contemplated if the trials are successful.
What makes polymer banknote substrate different?
The substrate for a polymer banknote is considerably more demanding than conventional packaging-grade BOPP film.
The material must combine:
High Dimensional Stability;
Controlled Thickness;
Excellent Surface Uniformity;
Optical And Opacity Characteristics;
Resistance To Moisture And Handling;
Precise Printing Compatibility;
Strong Adhesion With Inks And Coatings;
Compatibility With Security Features;
Very Tight Manufacturing Tolerances.
The substrate must also maintain performance throughout the banknote's expected service life.
This places polymer banknotes in a very different category from commodity BOPP packaging films.
Why BOPP?
Polypropylene offers a number of characteristics that make it suitable for currency applications.
It is lightweight, mechanically robust and resistant to moisture. A polymer substrate also allows the incorporation of features such as transparent windows and specialised security elements, which are difficult to reproduce in conventional paper-based notes.
Polymer banknotes are already used, either fully or partly, in around 60 countries
For India, the attraction is potentially longer service life and improved resistance to moisture, dirt and physical wear.
UFlex–Spectra partnership brings two different capabilities
The reported UFlex–Spectra bid is particularly interesting from a technology perspective.
UFlex brings polymer science, film manufacturing, packaging materials and large-scale industrial processing capabilities.
Spectra Systems brings specialised expertise in currency authentication and security technologies.
Together, these capabilities potentially cover two of the critical parts of the polymer-banknote value chain:
Important: no supplier has yet been selected
The current development should not be interpreted as an awarded contract to UFlex.
UFlex and Spectra have reportedly submitted a bid, but the procurement process still involves technical evaluation and testing
A new high-value application for BOPP
For the Indian polymer industry, perhaps the more interesting aspect of the proposal is that it introduces a potential specialty application for BOPP.
India already has a substantial BOPP film manufacturing base serving applications such as:
Flexible Packaging;
Labels;
Tapes;
Lamination;
Consumer Packaging.
Polymer-banknote substrate, however, would represent a fundamentally different market.
The value proposition would be based less on tonnes produced and more on:
precision + security + qualification + consistency + intellectual property.
A successful supplier would need the capability to manufacture substrate with extremely tight specifications and to operate within stringent security and government procurement requirements.
This could therefore create opportunities for companies involved in:
BOPP film → specialty coating → security features → printing → finishing → currency processing
rather than only for commodity polymer producers.
Potential technology opportunities
If India eventually moves to large-scale polymer banknote issuance, the ecosystem could extend beyond the substrate itself.
Potential technology areas include:
Specialty BOPP
Films with controlled thickness, dimensional stability, optical characteristics and surface energy.
Coatings
Opacifying coatings, anti-static coatings, print-receptive layers and security coatings.
Security technology
Transparent windows, optically variable features, microstructures and authentication elements.
Printing
Specialised intaglio, offset and other high-security printing technologies compatible with polymer substrates.
Quality control
Inline inspection systems capable of detecting microscopic defects in film, coatings and security features.
Recycling
A future polymer-banknote programme would also require an appropriate system for collection and responsible end-of-life treatment of used notes.
There could also be a long-term opportunity for Indian polymer and converting companies to develop capabilities that are applicable to other security-sensitive markets, including:
Passports;
Identity Cards;
Certificates;
Tax Stamps;
Security Labels;
High-Value Product Authentication.
Sources: BRBNMPL tender information, Business Standard; Press Trust of India; Government of India parliamentary information; RBI statements.
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